09:02 AM -- Implementation of Water Quality Control Commission Regulations 84 and 86

Pat Pfaltzgraff, Director, Water Quality Control Division (WQCD) of the Colorado Department of Public Health and the Environment (CDPHE) discussed the implementation of Water Quality Control Commission (WQCC) Regulation 84 concerning reclaimed water and Regulation 86 concerning graywater. He explained that Chapter 6 of the Colorado Water Plan identifies the state's objective to increase water reuse, also called reclaimed water, to help address Colorado's growing demand for water (Attachment A and Attachment B). Regulation 84 allows the reuse of municipal, domestic wastewater that has received secondary treatment from a wastewater treatment facility that that is then treated for approved uses under the regulation. Approved uses include industrial, landscape irrigation, commercial, fire protection, and agricultural irrigation for non-edible crops. Mr. Pfalzgraff identified water reuse facilities in Colorado.

Mr. Pfaltzgraff explained that graywater is the portion of wastewater that, before being treated or combined with other wastewater, is collected from fixtures within residential, commercial, industrial building or institutional facilities for additional use. Regulation 86, adopted in 2015, allows graywater use for subsurface irrigation and indoor flushing of toilets and urinals. To allow graywater use, local jurisdictions must adopt an ordinance or

resolution and implement a graywater control program. To date, only the City of Denver has adopted an ordinance for graywater use. He discussed potential health risks related to water reuse and identified measures to reduce these risks.

09:13 AM

Tyson Ingels, Lead Drinking Water Engineer for CDPHE, responded to questions from the committee about the potential for direct potable reuse to address Colorado's water demand. Direct potable reuse occurs when treated wastewater is introduced into an existing water supply system for beneficial uses, such as drinking and bathing. He also explained how graywater use differs from direct potable reuse.

09:17 AM

Mr. Pfaltzgraff responded to questions from the committee about the impact of water reuse on downstream water rights and water reuse facilities in Colorado. He also discussed Regulation 84 and whether changes are needed to the regulation and how other states regulate water reuse. He explained that Regulation 84 is scheduled for review by the WQCC in 2018 (Attachment C). He also explained that Regulation 84 allows irrigators to apply reused water to non-edible crops.

Melanie Criswell, Senior Review Engineer, CDPHE, explained how the federal Food and Drug Administration (FDA) regulates use of reused water to irrigate food crops under the Food Safety Modernization Act. Mr. Pfaltzgraff responded to questions from the committee about total dissolved solids (TDS) standards for reused water under Regulation 84 that were developed to protect groundwater. She also explained how water reuse may affect crop yields and discussed FDA's regulation for graywater and black water reuse.

09:41 AM

Mr. Pfaltzgraff and Mr. Ingels responded to questions from the committee about WQCD orders for rural and disadvantaged communities to improve their drinking water and wastewater systems to comply with water quality requirements. He also discussed the revised total coliform regulation and its impact on rural communities. Mr. Pfaltzgraff responded to questions from the committee about the authority of the WQCC to regulate water quality under current law and the differences between state and federal water quality standards.

10:04 AM -- The Status of Reuse in Colorado

Brenley McKenna, President, WateReuse Colorado, explained the mission of her organization is to promote water reuse and educate the public about the benefits of water reuse. She explained that water reuse involves capturing wastewater and treating it for another use (Attachment D). She explained that there are two types of reuse. Nonpotable reuse involves the treatment of wastewater for specific purposes other than drinking including industrial uses and irrigation. Potable reuse involves highly treating wastewater to augment a water supply that is used for drinking and all other purposes. Currently, 26 cities in Colorado use recycled water for nonpotable purposes

including irrigation and commercial uses. She explained that reused water is less costly than new water supplies and it benefits the environment. Ms. McKenna responded to questions from the committee about water reuse regulations in Colorado and other states.

John Rehring, WaterReuse Colorado, Project Manager for Carollo Engineers, responded to questions from the committee about water reuse regulations. He explained that Regulation 84 allow reused water to be applied to non-food crops. The regulation defines "non food crops" as crops not meant for human consumption.

10:19 AM

Eric Hecox, General Manager, Meridian Metropolitan District, explained that Colorado water law limits the types of water that may be reused to water that is introduced into a basin from transbasin diversions and nontributary groundwater. He explained how his district uses recycled water and discussed the possible use of aquifer storage and recovery by the district to store surplus recycled water. He also responded to questions from the committee regarding the district's wastewater system that is not allowed to discharge wastewater into streams or other water bodies.

10:27 AM

Laura Belanger, Water Resources and Environmental Engineer, Western Resource Advocates, discussed Colorado's growing water demand and the potential for reuse to help address that demand. She also explained how the Colorado Water Plan addresses water reuse and discussed opportunities to increase reuse in Colorado. She explained that reused water is less costly than new water supplies, benefits the environment, and provides a reliable supply that is available throughout the year. The South Platte Basin Basin Implementation Plan identified 58,135 acre-feet of water that available for reuse in the basin. She identified funding to promote water reuse and responded to questions from the committee about the effect of water reuse on downstream users who may rely on reusable flows.

10:43 AM

Mr. Rehring responded to questions from the committee about issues considered when developing Regulation 84 and Regulation 86. He explained that direct potable reuse (DPR) provides several benefits for water providers. For example, it provides a reliable water supply that is available year round and, unlike other forms of water reuse, it does not require dual distribution systems. He explained that WaterReuse Colorado has several goals to promote DPR in Colorado including the development of a clear regulatory framework, increasing public understanding and acceptance of DPR, and helping utilities identify DPR opportunities. He explained how DPR regulations will help increase public acceptance of DPR. He also explained that Big Spring Texas operates the only DPR project in the US. However, several DPR projects are being planned.

11:06 AM

Mr. Rehring identified issues that should be addressed in a DPR regulation including definitions, pathogen control, monitoring and reporting requirements, facility operator certification, and education. He discussed the role of public outreach and education in increasing public acceptance of DPR. He also responded to questions from the committee aboutthe EPA standards for water reuse and the potential cost for CDPHE to develop DPR regulations. He also discussed the authority of CDPHE to draft DPR regulations under current law.

11:23 AM

Mark Marlowe, Town of Castle Rock Department of Water, discussed the town's water reuse program and explained that much of the city's water rights may be used to extinction because the water comes from nontributary aquifers and transbasin diversions. He also explained the town is interested in implementing a DPR project and discussed the benefits of DPR to the city including infrastructure savings.

11:29 AM

Ms. Belanger responded to questions from the committee about the impact of water reuse on downstream water users. She discussed the nexus between energy use and water reuse. She also discussed water reuse opportunities related to oil and gas development and electric generation.

11:41 AM -- Reclaimed Water Regulations

Abigail Antolovich, Engineering Manager, Denver Water, discussed Denver Water's nonpotable water recycling project that provides water for irrigation, electric generation, and other purposes (Attachment E). She also discussed the water management policy known as One Water,which emphasizes green infrastructure and resource recovery, including water reuse. She discussed the urban water supply gap related to Colorado's growing population and explained how water reuse may help reduce that gap. She also identified states that allow reused water to be applied to edible crops and for other purposes.

Sybil Sharvelle, Associate Professor, Colorado State University, identified several states that allow use of reused water to flush toilets and discussed federal guidelines for water reuse that were developed by the EPA.

11:54 AM

Shannon Spurlock, Community Initiatives Coordinator, Denver Urban Gardens, discussed the benefits of using reused water for urban gardens (Attachment F). She also recommended that allowable uses for reused water under Regulation 84 be expanded to include irrigation for edible crops. She explained how farm-to-school programs can help promote water conservation and good nutrition among students. She also explained how the public can become more accepting of nonpotable reuse to irrigate food crops.

Ms. Antolovich responded to questions from the committee about nonpotable uses of reused water under Colorado regulations and other potential uses for reused water.

12:05 PM

The committee recessed.

01:33 PM -- Funding for Drinking Water and Wastewater Projects

The committee returned from recess. Pat Pfaltzgraff explained that the WQCD conducts an annual survey of public entities to identify drinking water and wastewater project needs. He explained how this list is then used to establish the federal EPA appropriations for state capitalization grants.

01:36 PM

Michael Brod, Executive Director, Colorado Water Resources and Power Development Authority, explained that each year, the WQCD, the Colorado Water Resources and Power Development Authority, and the Division of Local Government in the Department of Local Affairs (DOLA) prepare a list of projects that are eligible for loans from the Water Pollution Control Revolving Fund and the Drinking Water Revolving Fund. The lists are approved annually by the Water Quality Control Commission. The projects on the eligibility list are then included in an annual joint resolution that is considered by the General Assembly. Once the joint resolution is approved, the authority may issue loans for public drinking water and wastewater projects. In 2017, the General Assembly approved the project eligibility list for the Water Pollution Control Revolving Fund that identified 330 projects with an estimated cost of $5.6 billion. The 2017 project eligibility list for the Drinking Water Revolving Fund identified 421 projects with an estimated cost of $7.1 billion.

01:47 PM

Mr. Broad explained that approximately 70 percent of loans issued by the authority are issued to disadvantaged communities. These governmental entities are eligible for grants from the Water Pollution Control Revolving Fund and the Drinking Water Revolving Fund for up to $10,000 for engineering and design; energy audits; plans and specifications; environmental assessments; technical, managerial, and financial capacity (DWRF only); and legal fees for special district formation. In addition, these entities are also eligible for grants for up to $250,000 for design and engineering directly associated with a proposed project. He estimated that approximately $20 billion is needed to fund public drinking water and wastewater projects over the next 20 years. He explained the Department of Local Affairs provides funds and technical assistance to towns, school districts, and other political subdivisions impacted by mineral development. Funding for the loans and grants is obtained from federal mineral lease royalties and the state severance tax. These moneys may be used to pay for water and sewer improvements; road improvements; recreation centers, senior centers, and other public facilities; fire protection buildings and equipment; and local government planning. The department is also authorized to provide loans for potable water treatment facilities and domestic wastewater treatment works. Mr. Brod responded to questions from the committee about entities eligible for DOLA Energy Impact Assistance grants and U.S. Department of Agriculture grants and loans for rural communities.

01:51 PM

Mr. Pfaltzgraff responded to questions from the committee about the ability of disadvantaged communities to pay for mandated upgrades to water treatment facilities and domestic wastewater treatment works and identified state and federal funding assistance to help address the cost of these projects. He also discussed factors that lead the Water Quality Control Commission to change water quality standards and explained how state drinking water and water discharge standards differ from federal standards. He also discussed compliance with arsenic standards that were recently increased by the EPA.

Eric Potyondy, Assistant City Attorney, City of Fort Collins, explained how Fort Collins is planning to expand its boundaries and distributed a map of the current service area for the city's water utility (Attachment G). He also identified other water districts that also provide water to the City of Fort Collins and discussed opportunities to share water between the city and these water districts. He explained that sharing water between water providers

may require legislation and distributed draft legislation to allow such sharing (Attachment H). He also discussed the cost of litigating a change of a water right in water court and explained how this legislation may help save water providers the cost of litigating such changes.

Mr. Potyondy responded to questions from the committee about the ability of Fort Collins to lease water to the districts under current law and the potential effect of water sharing on other water rights.

02:38 PM

Adam Jokerst, Water Resources Project Engineer, City of Fort Collins, responded to questions from the committee about the connection between the city's water facilities and neighboring district facilities. He also explained how the proposed bill would affect interconnected water providers. Mr. Potyondy and Mr. Jokerst responded to questions from the committee about the proposed legislation and potential amendments to the draft bill.